Oil prices hold sharp losses with focus on secondary India tariffs
Friday - Needham has increased its price target for Pacira Pharmaceuticals (NASDAQ:PCRX) shares from $30.00 to $32.00, while reaffirming its buy rating on the company. Currently trading at $25.38, InvestingPro analysis suggests the stock is undervalued, with 3 analysts recently revising their earnings estimates upward. The adjustment comes after Pacira reported preliminary fourth-quarter 2024 results and shared details on its strategic plan and recent acquisition.
Pacira’s fourth-quarter update did not present new top-line numbers, as these were previously disclosed earlier in January, along with the unveiling of the company’s "5x30" strategy. Instead, the focus was on the guidance for the year 2025, the early progress of the NOPAIN initiative, and the acquisition of GQ Bio. Pacira’s revenue guidance for 2025 is set between $725 million and $765 million, indicating a year-over-year growth of 3% to 9%, which aligns with analysts’ expectations of $744 million. The company maintains a strong financial position with a current ratio of 2.25, indicating healthy liquidity to support its growth initiatives.
The growth of Exparel, Pacira’s flagship product, is expected to be volume-driven in 2025, with more significant advantages anticipated in the second half of the year from the NOPAIN program. NOPAIN is a strategic initiative aimed at reducing opioid use by promoting non-opioid alternatives for pain management. InvestingPro data reveals the company’s strong financial health score of 3.17 (rated as "GREAT"), suggesting robust operational capabilities to support this strategic initiative.
In addition to its guidance update, Pacira completed the acquisition of the remaining 81% stake in GQ Bio for $32 million, which includes $18 million in upfront cash. GQ Bio is the original developer of PCRX-201, an asset that complements Pacira’s pipeline. This acquisition supports the company’s "5x30" strategy, which involves investing in innovative pipeline assets and is expected to eliminate future milestone payments.
The Needham analyst highlighted that the acquisition and pipeline investment are reflected in the revised price target, which accounts for minor model adjustments. Pacira’s strategic moves and the positive outlook for 2025 reinforce the buy rating and the new price target set by Needham. The company’s impressive 63% stock price gain over the past six months and strong free cash flow yield of 17% further support this positive outlook. For deeper insights into Pacira’s valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Pacira Pharmaceuticals reported its Q4 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.91, compared to the forecasted $0.79. The company also achieved higher-than-expected revenue of $187.3 million, exceeding the forecast of $180.22 million. Notably, sales of Pacira’s key products, including EXPAREL, ZILRETTA, and ioverao, demonstrated year-over-year growth, contributing to the company’s strong financial performance. In addition, H.C. Wainwright analyst Oren Livnat increased the price target for Pacira to $48.00 from $39.00, maintaining a Buy rating. This adjustment reflects confidence in the company’s revenue projections, particularly regarding the drug Exparel, which has seen favorable developments. Pacira’s 2025 revenue guidance ranges from $725 million to $765 million, with expectations of growth driven by strategic initiatives and market expansion. Furthermore, the implementation of the NOPAIN Act is expected to enhance reimbursement for outpatient procedures, potentially accelerating the adoption of EXPAREL. These developments underscore Pacira’s strong market positioning and the positive outlook from analysts such as H.C. Wainwright.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.